S 3534: Exempts compensation for active military service from inclusion in a resident's adjusted gross income under certain circumstances.

  
  STATE OF NEW YORK ________________________________________________________________________ 3534 2025-2026 Regular Sessions  IN SENATE January 28, 2025 ___________ Introduced by Sen. ORTT -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue AN ACT to amend the tax law, in relation to exempting compensation for active military service from inclusion in a resident's adjusted gross income The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 8 of subsection (c) of section 612 of the tax 2 law, as amended by chapter 528 of the laws of 1964, is amended to read 3 as follows: 4 (8) Compensation received for active service in the armed forces of 5 the United States [on or after October first, nineteen hundred sixty- 6 one, and prior to September first, nineteen hundred sixty-two; provided, 7 however, that the amount of such compensation to be deducted shall not 8 exceed one hundred dollars for each month of the taxable year, subse- 9 quent to September, nineteen hundred sixty-one, during any part of which 10 month the taxpayer was engaged in such service] if: (A) the taxpayer 11 maintained a permanent residence in New York state and served in the 12 active service in the armed forces of the United States outside of New 13 York state for a period of at least ninety days during the taxable year; 14 (B) the taxpayer maintained a permanent place of abode outside of New 15 York state while in active service for the entire taxable year; or (C) 16 the taxpayer maintained an abode in New York state other than such 17 person's permanent address while in active service; including residence 18 in a military barracks, bachelor's quarters or on board a naval vessel. 19 For the purposes of this paragraph, the words "active service in the 20 armed forces of the United States" shall mean active duty (other than 21 for training) in the army, navy (including the marine corps), air force 22 or coast guard of the United States as defined in title ten of the 23 United States code. 24 § 2. This act shall take effect immediately and shall apply to taxable 25 years beginning on and after January 1, 2026. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07078-01-5